The Chinese property sector is experiencing further troubles as shares of China Evergrande, the embattled real estate firm, were suspended in Hong Kong after its billionaire chairman came under police watch. This development has fueled concerns about the stability of China’s property market, which could have wider implications for the country’s economy. Additionally, with the upcoming Golden Week holiday in China, where an estimated 800 million travel trips are expected to be made, investor sentiment has taken a hit.
In response to these developments, stock markets in Japan and Hong Kong have experienced losses, with Japan down 1.54% and Hong Kong down 1.35%. Furthermore, India and Australia have also seen declines in their stock markets, with India down 0.35% and Australia down 0.08%. The suspension of trading in China Evergrande shares in Hong Kong has raised concerns about the potential impact on other Chinese property developers and the overall health of the Chinese economy.
Investor caution is also evident in the US stock market, where all three major indexes ended mixed in the previous session. The tech-heavy Nasdaq Composite closed slightly higher, while the S&P 500 settled unchanged and the Dow retreated. Investors are now eagerly awaiting speeches from US Federal Reserve Chair Jerome Powell and other central bank officials, which could provide further insights into the direction of monetary policy. Meanwhile, oil prices have reached one-year highs due to tightening supplies, while gold remains steady and US stock futures hold steady.